QUESTION 1A The Adonkoko Co Ltd a medium sized company produces single product in its overseas factory. For control purposes, a standard costing system was recently introduced and its now in operation. The standards set for the month of May were as follows: Production and sales 16,000 units. Selling price (per unit) GH140 Materials: X 6 kilos per unit at GH12.25 per kilo Y 3 kilos per unit at GH3.20 per kilo. Labour: 4.5 hours per unit at GH8.40 per hour. Overheads (all fixed) is GH86,400 per month. They are not absorbed into the product costs. The actual data for the month of May is as follows. Produced 15,400 units which were sold at GH138.25 each. Materials: Used 98,560 kilos of material X at a total cost of GH1,256,640 and used 42,350 kilos of material Y at a total cost of GH132,979 Labour: Paid an actual rate of GH 8.65 per hour to the Labour force. The total amount paid out amounted to GH612,766. Overheads (all fixed) = GH 96,840 Required: (i) Prepare a standard costing profit statement, and a profit statement based on actual figures for the month of May. [5 Marks] (ii) Prepare a statement of the variances which reconciles the actual with the standard profit or loss figure. (Mix and yield variances are not required). [5 marks]